DIFFERENCE BETWEEN LOBBYING AND CORPORATE DIPLOMACY EXPLAINED

Lobbying is any attempt by individuals or private interest groups to influence the decisions of governments or the votes of legislators. While both corporate diplomacy  and lobbying try to influence on the external sphere, there are fundamental differences:

1. Lobbying is directed to influence the legislative process, to norms and regulations issued by government, regulatory authorities or public institutions (e.g. for the energy or financial sector), whereas Corporate Diplomacy directs its activities to the whole external environment of the corporation. Consequently, Corporate Diplomacy focuses on a variety of external inter-actors, who have a direct or indirect relationship with the corporation, such as stakeholders (e.g. government, local authorities, trade unions, business confederations, trade associations, NGOs), social groups (e.g. consumer representations, environmental groups, animal rights groups) and official representations (e.g. embassies, consulates), but also with competitors.
2. Lobbying is much more focused on concrete issues, whereas Corporate Diplomacy has a much wider vision.
3. Corporate Diplomacy tries to maintain a permanent fluid contact with these external inter-actors, who are important (or can be important in the future) for the corporation. Corporate Diplomacy is in this sense trying to spin a network of contacts, which can be relied upon in the future, when difficulties may arise. Lobbying does not need to have this broad spread of contacts as its work is directed to more concrete issues (e.g. within the automotive sector with regard to the pollution standards or within the pharmaceutical sector with regards to generics).
4. Lobbying firms specialize in particular areas (e.g. automotive, chemicals, energy, health). While there may be at times a more intense relationship with particular stakeholders or social groups, such a limitation of contacts at the outset counteract the activities of Corporate Diplomacy.

Corporate Diplomacy's activities are guided by six principles

1. Acting within the established legal framework and corporate philosophy, which means lawfully and in accordance with the corporate code of good practice and compliance.
2. Seeking win-win situations, which means a conduct, whilst pursuing one’s own interests, to look for compromise, building alliances and constructing coalitions among the stakeholders as a trustworthy and reliable partner.
3. Pursuing a fluid dialogue with social groups and civil society organizations involved, which means a convincing public presence, explaining the corporation’s philosophy, policies and actions, showing a high degree of transparency.
4. Aiming at long-term results, which means focusing on sustainable solutions, strengthening one’s own market position, by committing oneself to the society and contributing to its welfare.
5. Enhancing credibility, which means gaining the position as a reliable partner, whilst establishing a dense and widespread network.
6. Assuring a very high reputation for the corporation in host-countries, which means an impeccable perception of one’s corporation, maintaining the corporate identity.